Saddi declares boycott of cabinet sessions until govt. acts in electricity file
Energy Minister Joe Saddi, who was named by the Lebanese Forces, announced Tuesday his boycott of cabinet sessions until the government takes the “needed decisions” in the thorny electricity file.
"The core of the electricity problem lies in the lack of production capacity," said Saddi at a press conference, pointing out that "the private sector must invest in energy in Lebanon and operate the plants.” He, however, lamented that “endeavors and contacts revealed that global investors have their own conditions and require financial and security guarantees."
The minister noted that "friendly countries wishing to invest in Lebanon are asking for the same financial guarantees required by the private sector," revealing that "24 companies are interested in investing in the energy sector, but under conditions, most notably the provision of financial guarantees."
He also stressed that "the necessary investments were not executed, and depositors' funds were wasted on 'burning fuel.'"
Saddi confirmed that "the financial sustainability of Électricité du Liban (EDL) must take place through its own capabilities.”
“Our call to move toward a dynamic tariff that fluctuates with fuel prices is not new, and the second requirement is addressing non-technical losses -- which stand at 30 percent and which I call 'theft,'" the minister went on to say.
He added: "We are working on securing the independence of Lebanon's choice in importing gas, whether by land or sea, so we do not remain hostage to anyone." He also announced "the rehabilitation of the gas pipeline to Deir Amar, while importing electricity from Syria awaits a study," explaining that he has "referred the contract for importing electricity from Syria to the Board of Directors of Électricité du Liban, and we are looking into purchasing electricity from Turkey via Syria."
He also stated that "the Electricity Regulatory Authority launched a tender to invest in smaller power generation plants, and 20 companies applied for conventional and renewable energy projects." Saddi pointed out that "the price of fuel imported by EDL has doubled over the past six months, which led to a reduction in supply hours after reaching around 7 hours daily last February.”
“It began to decline due to rising fuel prices, and the solution lies in a dynamic tariff that changes according to global fuel prices," he explained.
Saddi also emphasized that "the state must pay the exemptions it granted on the sidelines of the war in the south and must assume its responsibilities by reimbursing these amounts so EDL can purchase fuel."
"I have decided to abstain from attending cabinet meetings until the required decisions are taken," he added.
Source: Naharnet
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